Many of you conduct broker price opinions (BPOs) in addition to representing parties in real estate transactions. Did you know that the Code of Ethics provides guidelines by which you must abide in rendering BPO services?
When Realtors® prepare opinions of real property value or price, they MUST (1) Be knowledgeable about the type of property being valued, (2) have access to the information and resources necessary to formulate an accurate opinion, and (3) be familiar with an area where the subject property is located unless a lack of any of these is disclosed in advance to the party requesting the opinion.
In addition, when Realtors® prepare an opinion of value or price other than in pursuit of a listing or to assist a potential buyer in the purchase of a property, the opinion MUST include:
1. Identification of the subject property
2. Date prepared
3. Defined value or price
4. Limiting conditions, including statement of purposes and intended uses
5. Any present or contemplated interest, including the possibility of representing the seller/landlord or buyer/tenant
6. Basis for the opinion, including applicable market data
7. If the opinion is not an appraisal, a statement to that effect
8. Disclosure of whether and when a physical inspection of the propertys exterior was conducted
9. Disclosure of whether and when a physical inspection of the propertys interior was conducted, and
10. Disclosure of whether the Realtor® has any conflict of interest.